MIRA INFORM REPORT

Report No. :	326570
Report Date :	12.06.2015

IDENTIFICATION DETAILS

Name :	AFFIN HWANG INVESTMENT BANK BERHAD
Formerly Known As :	HWANGDBS INVESTMENT BANK BHD (18/09/2014) HWANG-DBS INVESTMENT BANK BHD (08/05/2007) HWANG-DBS SECURITIES BHD (25/01/2007) HWANG & YUSOFF SECURITIES SDN (24/09/1996) HWANG & YUSOFF SECURITIES SDN BHD (01/09/1992) SOUTHERN STOCK BROKERS SDN (13/07/1973)
Registered Office :	Wisma Sri Pinang, 60, Green Hall, Level 7, 10200 George Town, Pulau Pinang
Country :	Malaysia
Financials (as on) :	31.07.2013
Date of Incorporation :	26.04.1973
Com. Reg. No.:	14389-U
Legal Form :	Public
Line of Business :	Investment Banking, Stockbroking, & Related Financial Services
No of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Slow But Correct
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
Malaysia	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderate Low Risk	B1
Moderate Risk	B2
Moderate High Risk	C1
High Risk	C2
Very High Risk	D

MALAYSIA ECONOMIC OVERVIEW

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. Falling global oil prices in the second half of 2014 have shrunk Malaysia’s current account surplus and put downward pressure on the ringgit. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 32% of government revenue in 2013. Bank Negara Malaysia (central bank) maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB earlier raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays. Malaysia is a member of the 12-nation Trans-Pacific Partnership free trade agreement negotiations and, with the nine other ASEAN members, will form the ASEAN Economic Community in 2015.

Source : CIA

EXECUTIVE SUMMARY

REGISTRATION NO.	:	14389-U
COMPANY NAME	:	AFFIN HWANG INVESTMENT BANK BERHAD
FORMER NAME	:	HWANGDBS INVESTMENT BANK BHD (18/09/2014) HWANG-DBS INVESTMENT BANK BHD (08/05/2007) HWANG-DBS SECURITIES BHD (25/01/2007) HWANG & YUSOFF SECURITIES SDN (24/09/1996) HWANG & YUSOFF SECURITIES SDN BHD (01/09/1992) SOUTHERN STOCK BROKERS SDN (13/07/1973)
INCORPORATION DATE	:	26/04/1973
COMPANY STATUS	:	EXIST
LEGAL FORM	:	PUBLIC
LISTED STATUS	:	NO
REGISTERED ADDRESS	:	WISMA SRI PINANG, 60, GREEN HALL, LEVEL 7, 10200 GEORGE TOWN, PULAU PINANG, MALAYSIA.
BUSINESS ADDRESS	:	WISMA SRI PINANG, 60 GREEN HALL, LEVELS 2, 3, 4, 5 & 7, 10200 GEORGE TOWN, PULAU PINANG, MALAYSIA.
TEL.NO.	:	04-2636996
FAX.NO.	:	04-2639597
WEB SITE	:	WWW.AFFINHWANG.COM
CONTACT PERSON	:	ABD MALIK BIN A RAHMAN ( MANAGING DIRECTOR )
INDUSTRY CODE	:	64194
PRINCIPAL ACTIVITY	:	INVESTMENT BANKING, STOCKBROKING, & RELATED FINANCIAL SERVICES
AUTHORISED CAPITAL	:	MYR 1,500,000,000.00 DIVIDED INTO ORDINARY SHARE 1,500,000,000.00 OF MYR 1.00 EACH.
ISSUED AND PAID UP CAPITAL	:	MYR 780,000,000.00 DIVIDED INTO ORDINARY SHARES 768,775,000 CASH AND 11,225,000 OTHERWISE OF MYR 1.00 EACH.
SALES	:	MYR 136,228,000 [2013]
NET WORTH	:	MYR 869,657,000 [2013]
STAFF STRENGTH	:	N/A
LITIGATION	:	CLEAR
DEFAULTER CHECK	:	CLEAR
FINANCIAL CONDITION	:	LIMITED
PAYMENT	:	AVERAGE
MANAGEMENT CAPABILITY	:	AVERAGE
COMMERCIAL RISK	:	N/A
CURRENCY EXPOSURE	:	N/A
GENERAL REPUTATION	:	GOOD
INDUSTRY OUTLOOK	:	AVERAGE GROWTH

HISTORY / BACKGROUND

As a public limited company, the Subject must have at least one shareholder but there is no limit on the maximum number of shareholders. The Subject must have at least two directors. A public limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, suing or be sued by other companies. The liabilities of the shareholders are only up to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act,1965 and must file in its annual return, together with its financial statements with the Registrar of Companies. In Malaysia, all the companies seeking listing on the Bursa Malaysia (Malaysia Stock Exchange) must be public limited companies.

The Subject is principally engaged in the (as a / as an) investment banking, stockbroking, & related financial services.

The Subject is not listed on Bursa Malaysia (Malaysia Stock Exchange).

Share Capital History

Date	Authorised Shared Capital	Issue & Paid Up Capital
02/01/2015	MYR 1,500,000,000.00	MYR 780,000,000.00
25/09/2013	MYR 600,000,000.00	MYR 500,000,000.00
28/05/1996	MYR 600,000,000.00	MYR 250,000,000.00
27/01/1995	MYR 600,000,000.00	MYR 165,000,000.00

The major shareholder(s) of the Subject are shown as follows :

Name	Address	IC/PP/Loc No	Shareholding	(%)
AFFIN HOLDINGS BERHAD	CHULAN TOWER, 3 JALAN CONLAY, 7TH FLOOR, 50450 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.	23218W	780,000,000.00	100.00
			---------------	------
			780,000,000.00	100.00
			============	=====

+ Also Director

The Subject's interest in other companies (Subsidiaries/Associates) are shown as follow :

Local No	Country	Company	(%)	As At
372312H	MALAYSIA	HWANGDBS CUSTODIAN SERVICES SDN. BHD.	100.00	26/11/2014
430550H	MALAYSIA	HWANG-DBS (JOHOR BAHRU) SDN. BHD.	100.00	26/11/2014
278474A	MALAYSIA	AFFIN HWANG NOMINEES (ASING) SDN. BHD.	100.00	26/11/2014
41117T	MALAYSIA	AFFIN HWANG NOMINEES (TEMPATAN) SDN. BHD.	100.00	26/11/2014
128540U	MALAYSIA	ALLIANCEDBS RESEARCH SDN. BHD.	51.00	26/11/2014
256674T	MALAYSIA	ASIAN ISLAMIC INVESTMENT MANAGEMENT SDN. BHD.	49.00	26/11/2014

DIRECTORS

DIRECTOR 1

Name Of Subject	:	STEPHEN CHARLES LI KWOK SZE
Address	:	35D, ESTORIL COURT, 55, GARDEN ROAD, HONG KONG.
IC / PP No	:	761251236
Nationality	:	BRITISH
Date of Appointment	:	15/04/2014

DIRECTOR 2

Name Of Subject	:	TAN SRI YAACOB BIN MAT ZAIN GEN (R)
Address	:	7, JALAN MAKTAB LIMA, 54000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
New IC No	:	351216-03-5005
Date of Birth	:	16/12/1935
Nationality	:	MALAYSIAN
Date of Appointment	:	15/04/2014

DIRECTOR 3

Name Of Subject	:	MR. LIM HUN SOON @ DAVID LIM
Address	:	18, JALAN TABAN 4, TAMAN LUCKY BANGSAR, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No	:	4885354
New IC No	:	551104-10-6127
Date of Birth	:	04/11/1955
Nationality	:	MALAYSIAN
Date of Appointment	:	15/04/2014

DIRECTOR 4

Name Of Subject	:	DATO' RAJA AMAN BIN RAJA HAJI AHMAD
Address	:	12, JALAN 1, TAMAN TAR, 68000 AMPANG, SELANGOR, MALAYSIA.
IC / PP No	:	2776599
New IC No	:	451121-08-5411
Date of Birth	:	21/11/1945
Nationality	:	MALAYSIAN
Date of Appointment	:	15/04/2014

DIRECTOR 5

Name Of Subject	:	TAN SRI DATO' LODIN BIN WOK KAMARUDDIN
Address	:	124, JALAN ATHINAHAPPAN 1, TAMAN TUN DR.ISMAIL, 60000 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.
IC / PP No	:	1377866
New IC No	:	490320-11-5005
Date of Birth	:	20/03/1949
Nationality	:	MALAYSIAN
Date of Appointment	:	15/04/2014

DIRECTOR 6

Name Of Subject	:	LEE CHOR KEE
Address	:	2, LINCOLN ROAD, 08-01, PARK INFINIA, 308342, SINGAPORE.
IC / PP No	:	E4255352J
Nationality	:	SINGAPOREAN
Date of Appointment	:	15/04/2014

DIRECTOR 7

Name Of Subject	:	MR. ARIFFIN BIN ALIAS
Address	:	12, JALAN TERATAK U8/96B, LAGENDA, BUKIT JELUTONG, 40150 SHAH ALAM, SELANGOR, MALAYSIA.
IC / PP No	:	0346696
New IC No	:	470112-10-5699
Date of Birth	:	12/01/1947
Nationality	:	MALAYSIAN
Date of Appointment	:	15/04/2014

DIRECTOR 8

Name Of Subject	:	MR. ABD MALIK BIN A RAHMAN
Address	:	10, JALAN RIMBA RIANG 9/8, SECTION 9, KOTA DAMANSARA, 47810 PETALING JAYA, SELANGOR, MALAYSIA.
IC / PP No	:	0668612
New IC No	:	481014-01-5095
Date of Birth	:	14/10/1948
Nationality	:	MALAYSIAN
Date of Appointment	:	15/04/2014

MANAGEMENT

1)	Name of Subject	:	ABD MALIK BIN A RAHMAN
	Position	:	MANAGING DIRECTOR

2)	Name of Subject	:	CATHERINE ANG
	Position	:	CREDIT CONTROLLER

3)	Name of Subject	:	MAIMOONAH BINTI MOHAMED HUSSAIN
	Position	:	MANAGER

AUDITOR

Auditor	:	PRICEWATERHOUSECOOPERS
Auditor' Address	:	1 SENTRAL, JALAN RAKYAT, KUALA LUMPUR SENTRAL, LEVEL 15, 50470 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

COMPANY SECRETARIES

1)	Company Secretary	:	MS. AZIZAH BINTI SHUKOR
	IC / PP No	:	A3622480
	New IC No	:	670827-71-5120
	Address	:	16, JALAN 3/5A, TAMAN MELATI, SETAPAK, 53100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

BANKING

No Banker found in our databank.

ENCUMBRANCE (S)

Charge No	Creation Date	Charge Description	Chargee Name	Total Charge	Status
1	12/11/1980	N/A	DC NOMURA MERCHANT BANKERS BHD	MYR 2,000,000.00	Satisfied
4	12/01/1984	N/A	ARABMALAYSIAN MERCHANT BANK BHD	MYR 3,000,000.00	Satisfied
3	16/01/1984	N/A	DC NOMURA MERCHANT BANKERS BHD	MYR 3,000,000.00	Satisfied
5	12/12/1984	N/A	MALAYSIAN INTERNATIONAL MERCHANT BANKERS BHD	MYR 3,000,000.00	Satisfied
14	13/12/1984	N/A	HONG LEONG FINANCE BHD	MYR 3,000,000.00	Satisfied
15	12/03/1985	N/A	MALAYAN UNITED BANK BHD	MYR 5,000,000.00	Satisfied
16	24/05/1985	N/A	MALAYAN UNITED BANK BHD	MYR 5,000,000.00	Satisfied
13	27/06/1985	N/A	HONG LEONG FINANCE BHD	MYR 5,000,000.00	Satisfied
7	29/07/1985	N/A	D C NOMURA MERCHANT BANKERS BHD	MYR 2,000,000.00	Satisfied
6	03/08/1985	N/A	INDIAN BANK	MYR 3,000,000.00	Satisfied
22	17/09/1985	N/A	DEVELOPMENT COMMERCIAL BANK BHD	MYR 5,000,000.00	Satisfied
8	27/09/1985	N/A	KUALA LUMPUR FINANCE BHD	MYR 3,000,000.00	Satisfied
9	10/10/1985	N/A	MALAYSIA BORNEO FINANCE CORPM BHD	MYR 10,000,000.00	Satisfied
17	05/11/1985	N/A	MALAYAN UNITED BANK BHD	MYR 5,000,000.00	Satisfied
10	16/11/1985	N/A	HONG LEONG FINANCE BHD	MYR 2,000,000.00	Satisfied
11	03/12/1985	N/A	MALAYSIA BORNEO FINANCE CORP M BHD	MYR 315,000.00	Satisfied
12	15/01/1986	N/A	KUALA LUMPUR FINANCE BHD	MYR 3,000,000.00	Satisfied
18	14/03/1988	N/A	BOLTON FINANCE BERHAD	MYR 1,000,000.00	Satisfied
19	03/01/1990	N/A	D C MITSUI MERCHANT BANKERS BHD	MYR 1,000,000.00	Satisfied
20	16/01/1991	N/A	PERWIRA HABIB BANK MALAYSIA BHD	MYR 3,000,000.00	Satisfied
21	30/05/1991	N/A	ARABMALAYSIAN MERCHANT BANK BHD	MYR 2,000,000.00	Satisfied
23	19/06/1991	N/A	ASEAMBANKERS MALAYSIA BERHAD	MYR 4,000,000.00	Satisfied
24	25/09/1993	N/A	BBMB KEWANGAN BHD	MYR 5,000,000.00	Satisfied
25	07/10/1993	N/A	BANK UTAMA MALAYSIA BHD	MYR 10,000,000.00	Satisfied
27	17/03/1994	N/A	BANK UTAMA MALAYSIA BHD	MYR 15,000,000.00	Satisfied

LITIGATION CHECK AGAINST SUBJECT

* A check has been conducted in our databank against the Subject whether the Subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank.

No winding up petition was found in our databank.

DEFAULTER CHECK AGAINST SUBJECT

* We have checked through the Subject in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection.

No blacklisted record & debt collection case was found in our defaulters' databank.

PAYMENT RECORD

SOURCES OF RAW MATERIALS:
Local	:	N/A
Overseas	:	N/A

The Subject is a service provider.

The Subject refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT
Prompt 0-30 Days	[	]	Good 31-60 Days	[	]	Average 61-90 Days	[	X	]
Fair 91-120 Days	[	]	Poor >120 Days	[	]

CLIENTELE

Local	:	N/A
Overseas	:	N/A

The Subject refused to disclose its clientele.

OPERATIONS

Services

:

INVESTMENT BANKING, STOCKBROKING, & RELATED FINANCIAL ACTIVITIES

Branch

:

YES

Other Information:

The Subject is principally engaged in the (as a / as an) investment banking, stockbroking, & related financial services.

The Subject is engaged in financial advice and execution across investment banking, asset management and securities.

The Subject also provides diverse range of Islamic equity and debt products as specialists in Shariah-compliant investment management.

They provide loan-funding, foreign exchange, structured products and derivatives and advices in equity and debt capital markets, structured lending, and corporate advisory services.

RECENT DEVELOPMENT

4 December 2014

Affin Hwang Investment Bank Berhad wishes to announce that Bank Negara Malaysia has taken cognisance of the change of its name from HwangDBS Investment Bank Berhad (14389-U) to Affin Hwang Investment Bank Berhad (14389-U), effective 18 September 2014.

22 January 2014

KUALA LUMPUR: Affin Holdings Bhd has agreed to acquire the investment banking, asset management and futures dealing assets of HwangDBS (M) Bhd for RM1.36bil. The group said on Wednesday it will buy Hwang Investment Bank for RM1.09bil, or 1.28 times the latter's book value of RM849.26mil as at Jan 31, 2013.

Affin also acquired 70% of Hwang Investment Management Bhd (Hwang IM) and 49% of Asian Islamic Investment Management Sdn Bhd (AIIM) for RM262mil, and HDM Futures Sdn Bhd for RM13mil. It plans to complete a pre-closing reorganisation that will render Hwang IM, AIIM and HDM Futures as subsidiaries of Hwang IB.

Affin would then buy 100% of Hwang IB following the pre-closing exercise and 17% of Hwang IM2 (minority shareholders). To fund the purchase, Affin has secured bridging loans of RM1.4bil and plans to raise gross proceeds of RM1.25bil via a rights issue of new Affin shares.

The proceeds will be used to partially repay the bridging loans and to beef up Affin Bank Bhd's core capital.

With effective on 22 Sept 2014, they will be operating as a single entity "Affin Hwang Investment Bank Berhad" in FAST. Hence, Affin Investment Bank Berhad will be deactivated and no longer be in use. All transactions to both entities should be directed to Affin Hwang Investment Bank Berhad.

Affin Investment Bank Berhad and HwangDBS Investment Bank Berhad have successfully merged on 20 September 2014. Its subsidiaries, Affin Fund Management Berhad (Affin Fund) and Hwang Investment Management Berhad (HwangIM) have also merged into one entity under the new name of Affin Hwang Asset Management Berhad (Affin Hwang AM). The major shareholder of Affin Hwang AM is Affin Hwang Investment Bank Berhad (Affin Hwang IB) with 70% shareholding, while Nikko Asset Management Asia Ltd retains its stake at 30%. Affin Hwang IB is a subsidiary of Affin Holdings Berhad (Affin). This merger comes following the acquisition of Hwang-DBS (Malaysia) Bhd's investment banking, asset management and futures businesses by Affin Holdings Berhad.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client	:	N/A
Current Telephone Number	:	04-2636996
Match	:	N/A
Address Provided by Client	:	MALAYAN BANKING BERHAD, 100 JALAN TUN PEARK, 50050 KUALA LUMPAR
Current Address	:	WISMA SRI PINANG, 60 GREEN HALL, LEVELS 2, 3, 4, 5 & 7, 10200 GEORGE TOWN, PULAU PINANG, MALAYSIA.
Match	:	NO
Latest Financial Accounts	:	YES

Other Investigations

We contacted one of the staff from the Subject and she provided some information.

The Subject refused to disclose its banker and number of employees.

The address provided belongs to Malayan bank berhad.

FINANCIAL ANALYSIS

Profitability
Turnover	:	Increased	[	3.66%	]
Profit/(Loss) Before Tax	:	Decreased	[	38.05%	]
Return on Shareholder Funds	:	Unfavourable	[	3.39%	]
Return on Net Assets	:	Unfavourable	[	4.41%	]
The higher turnover could be attributed to the favourable market condition. The Subject's profit fell sharply because of the high operating costs incurred. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.
Working Capital Control
Stock Ratio	:	Nil	[	0 Days	]
Debtor Ratio	:	Favourable	[	1 Days	]
Creditors Ratio	:	Favourable	[	0 Days	]
As the Subject is a service oriented company, the Subject does not need to keep stocks. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.
Liquidity
Liquid Ratio	:	Favourable	[	1.22 Times	]
Current Ratio	:	Unfavourable	[	1.22 Times	]
A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.
Solvency
Interest Cover	:	Nil	[	0.00 Times	]
Gearing Ratio	:	Favourable	[	0.00 Times	]
The Subject's interest cover was nil as it did not pay any interest during the year. The Subject had no gearing and hence it had virtually no financial risk. The Subject was financed by its shareholders' funds and internally generated fund. During the economic downturn, the Subject, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.
Overall Assessment :
Although the Subject's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the Subject's profit margin. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject did not make any interest payment during the year. The Subject was dependent on its shareholders' funds to finance its business needs. The Subject was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The Subject has good chance of getting loans, if the needs arises.
Overall financial condition of the Subject : LIMITED

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

Major Economic Indicators:	2011	2012	2013	2014*	2015**
Population ( Million)	28.7	29.3	29.8	30.3	30.5
Gross Domestic Products ( % )	5.1	5.6	5.3	6.0	6.0
Domestic Demand ( % )	8.2	9.4	5.6	6.4	6.2
Private Expenditure ( % )	8.2	8.0	8.6	7.9	6.9
Consumption ( % )	7.1	1.0	5.7	6.5	5.6
Investment ( % )	12.2	11.7	13.3	12.0	10.7
Public Expenditure ( % )	8.4	13.3	4.4	2.3	4.2
Consumption ( % )	16.1	11.3	(1.2)	2.1	3.8
Investment ( % )	(0.3)	15.9	4.2	2.6	4.7
Balance of Trade ( MYR Million )	116,058	106,300	71,298	52,314	-
Government Finance ( MYR Million )	(45,511)	(42,297)	(39,993)	(37,291)	-
Government Finance to GDP / Fiscal Deficit ( % )	(5.4)	(4.5)	(4.0)	(3.5)	(3.0)
Inflation ( % Change in Composite CPI)	3.1	1.6	2.5	3.3	4.0
Unemployment Rate	3.3	3.2	3.0	3.0	3.0
Net International Reserves ( MYR Billion )	415	427	-	417	-
Average Risk-Weighted Capital Adequacy Ratio ( % )	3.50	2.20	-	-	-
Average 3 Months of Non-performing Loans ( % )	14.80	14.70	-	-	-
Average Base Lending Rate ( % )	6.60	6.53	6.53	-	-
Business Loans Disbursed( % )	15.3	32.2	-	-	-
Foreign Investment ( MYR Million )	23,546.1	26,230.4	38,238.0	-	-
Consumer Loans ( % )	-	-	-	-	-
Registration of New Companies ( No. )	45,455	45,441	46,321	-	-
Registration of New Companies ( % )	3.0	(0.0)	1.9	-	-
Liquidation of Companies ( No. )	132,485	17,092	26,430	-	-
Liquidation of Companies ( % )	417.8	(87.1)	54.6	-	-
Registration of New Business ( No. )	284,598	324,761	329,895	-	-
Registration of New Business ( % )	5.0	14.0	2.0	-	-
Business Dissolved ( No. )	20,121	20,380	18,161	-	-
Business Dissolved ( % )	1.9	1.3	(10.9)	-	-
Sales of New Passenger Cars (' 000 Unit )	535.1	552.2	576.7	598.4	610.3
Cellular Phone Subscribers ( Million )	35.3	38.5	43.0	43.8	-
Tourist Arrival ( Million Persons )	24.7	25.0	25.7	28.0	-
Hotel Occupancy Rate ( % )	60.6	62.4	62.6	-	-
Credit Cards Spending ( % )	15.6	12.6	-	-	-
Bad Cheque Offenders (No.)	32,627	26,982	28,876	-	-
Individual Bankruptcy ( No.)	19,167	19,575	21,984	-	-
Individual Bankruptcy ( % )	5.8	2.1	12.3	-	-

INDUSTRIES ( % of Growth ):	2011	2012	2013	2014*	2015**
Agriculture	5.8	1.0	2.1	3.8	3.1
Palm Oil	10.8	(0.3)	2.6	6.7	-
Rubber	6.1	(7.9)	(10.1)	(10.4)	-
Forestry & Logging	(7.6)	(4.5)	(7.8)	(4.2)	-
Fishing	2.1	4.3	1.6	2.7	-
Other Agriculture	7.1	6.4	8.2	6.2	-
Industry Non-Performing Loans ( MYR Million )	634.1	-	-	-	-
% of Industry Non-Performing Loans	3.2	-	-	-	-
Mining	(5.4)	1.4	0.9	(0.8)	2.8
Oil & Gas	(1.7)	-	-	-	-
Other Mining	-	-	-	-	-
Industry Non-performing Loans ( MYR Million )	46.5	-	-	-	-
% of Industry Non-performing Loans	0.1	-	-	-	-
Manufacturing #	4.7	4.8	3.4	6.6	5.5
Exported-oriented Industries	4.1	6.5	3.3	5.6	-
Electrical & Electronics	(4.0)	12.7	6.9	13.3	-
Rubber Products	20.7	3.0	11.7	(0.3)	-
Wood Products	(5.1)	8.7	(2.7)	5.1	-
Textiles & Apparel	13.2	(7.1)	(2.6)	11.5	-
Domestic-oriented Industries	10.7	1.7	6.8	9.4	-
Food, Beverages & Tobacco	4.80	2.70	3.60	6.13	6.13
Chemical & Chemical Products	10.0	10.8	5.6	-	-
Plastic Products	3.8	-	-	-	-
Iron & Steel	2.2	(6.6)	5.0	0.1	-
Fabricated Metal Products	21.8	13.8	9.9	2.9	-
Non-metallic Mineral	12.1	2.9	(2.0)	5.4	-
Transport Equipment	12.0	3.4	13.8	22.9	-
Paper & Paper Products	9.5	3.1	1.8	4.7	-
Crude Oil Refineries	9.3	-	-	-	-
Industry Non-Performing Loans ( MYR Million )	6,537.2	-	-	-	-
% of Industry Non-Performing Loans	25.7	-	-	-	-
Construction	4.7	18.6	10.9	12.7	10.7
Industry Non-Performing Loans ( MYR Million )	3,856.9	-	-	-	-
% of Industry Non-Performing Loans	10.2	-	-	-	-
Services	7.1	6.4	5.9	5.9	5.6
Electric, Gas & Water	3.5	4.4	4.2	3.6	3.9
Transport, Storage & Communication	6.50	7.10	7.30	7.50	7.15
Wholesale, Retail, Hotel & Restaurant	5.2	4.7	5.9	6.9	6.5
Finance, Insurance & Real Estate	6.90	9.70	3.70	4.65	4.25
Government Services	12.4	9.4	8.3	6.1	5.6
Other Services	5.1	3.9	5.1	4.8	4.5
Industry Non-Performing Loans ( MYR Million )	6,825.2	-	-	-	-
% of Industry Non-Performing Loans	23.4	-	-	-	-
* Estimate / Preliminary
** Forecast
# Based On Manufacturing Production Index

INDUSTRY ANALYSIS

MSIC CODE
64194 : Investment Banks
INDUSTRY :	FINANCIAL SERVICES
In 2014, the finance and insurance subsector is expected to sustain growth at 1.8% (2013: 1.8%). However, the finance and insurance subsector moderated to 1.5% during the first half of 2014. Meanwhile, the finance segment rose 1.4% due to the slower growth in net interest and fee-based incomes. During the first seven months of 2014, total loan applications contracted 1.9% to RM463 billion, while total loans approved declined 2.4% to RM223 billion, partly due to macro prudential measures to rein in household debt. However, in the first seven months of 2014, loan disbursements rebounded strongly by 13% to RM601 billion largely for working capital to the business sector, with a share of about 57% of total loans disbursed amid favorable economic activity.
On the other hand, the insurance segment moderated to 1.8% during the first six months of 2014 following the slower performance of life insurance business. Over the first seven months of 2014, new premiums for life insurance decreased marginally by 0.6% to RM4.7 billion due to a slight decline in ordinary life insurance premiums. However, life insurance claims grew more rapidly by 10.2% to RM9.8 billion in the first seven months of 2014 on account of higher medical claims and benefits paid on maturing policies. Meanwhile, gross direct premiums for general insurance grew 5.3% on account of an increase in motor and fire businesses, with motor business continuing to contributed the highest share (46%) of total gross direct premiums.
The Financial Services NKEA under ETP (Economic Transformation Programme) focused on developing Malaysia's financial industry, which represents a core component and key driver of the Malaysian economy, in tandem with the needs of a high-income nation. The industry however has faced several challenges in achieving its next stages of growth. Among these is a lack of scale in certain segments of the banking industry, which has hindered the competitiveness of local banks against some of their regional neighbours. In addition, the types of investors, products and currencies available in the capital markets must be extended to enable continued economic growth. The financial service NKEA is target to grow the industry's GNI contribution to RM180.2 billion and create 275,400 new jobs by 2020.
Besides, Malaysia remains largely a cash-based society, with 91% of transactions completed using cash. The usage of cheques, e-money, credit card and Internet banking meanwhile only account for 1.3%, 4.7%, 1.8% and 0.6% of transactions respectively. The financial services NKEA also seeks to create an efficient economy and reduce dependence on cash transactions to 63 % of total transactions by 2020. Other efforts implemented under this NKEA include the Ministry of Finance gradually increasing the stamp duty on cheques and eliminating the use of cheques in Government-related payments. This will also be undertaken to further integrate and promote cross-border financial intermediation in the retail market.
Furthermore, under the ETP, Islamic banking has been identified as one of the key sectors which are expected to contribute to a higher and more sustainable economic growth. This will encourage greater financial and trade flows between Malaysia and foreign countries particularly Asia and the Middle East. Malaysia is now recognised as the pioneer and at the forefront of Islamic banking and finance. In terms of product development, Malaysia is expected to introduce more new and innovative Islamic banking products including structured deposit and derivatives & hedging products. Malaysia will continue to broaden the range of Islamic finance products in efforts to become an international Islamic finance hub.
In strengthening the country's financial system, Bank Negara Malaysia has also been given more regulatory and supervisory oversight powers with the enactment of the Financial Services Act 2013 and the Islamic Financial Services Act 2013. The newly-introduced legislations are aimed at strengthening financial stability, supporting inclusive growth in the financial system and the economy, as well as enhancing consumer protection.
Starting from April 1, 2015, some of the financial services will be charged under GST, including loan processing, rental services, counting services for coins and currency deposit, prepaid and reload service, maintenance services in relation to buying and selling of shares, supply of automatic teller machine (ATM) cards and saving account books, safe keeping or custodial services, and intermediary services in which fees or commissions are being charged. This may have an impact on the financial service industry.
OVERALL INDUSTRY OUTLOOK : Average Growth

CREDIT RISK EVALUATION & RECOMMENDATION

Incorporated in 1973, the Subject is a Public Limited Company, focusing on investment banking, stockbroking, & related financial services. The Subject has been in business for over two decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares. The Subject is a large entity with strong capital position of MYR 780,000,000. We are confident with the Subject's business and its future growth prospect. With a strong backing from its shareholders, the Subject enjoys timely financial assistance should the needs arise.

Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

Financially, the Subject registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a zero geared company, the Subject virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at MYR 869,657,000, the Subject should be able to maintain its business in the near terms.

Without a strong assets backing, the Subject may face difficulties in getting loans for its future expansion and continued growth.

The Subject's payment habit is average. With its adequate working capital, the Subject should be able to pay its short term debts.

The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the Subject is expected to benefit from the favourable outlook of the industry.

Based on the above condition, we recommend credit be granted to the Subject normally.

PROFIT AND LOSS ACCOUNT

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING STANDARDS(FRS)

AFFIN HWANG INVESTMENT BANK BERHAD

Financial Year End	2013-07-31	2012-07-31	2011-07-31	2010-07-31	2009-07-31
Months	12	12	12	12	12
Consolidated Account	GROUP	GROUP	GROUP	GROUP	GROUP
Audited Account	YES	YES	YES	YES	YES
Unqualified Auditor's Report (Clean Opinion)	YES	YES	YES	YES	YES
Financial Type	FULL	FULL	SUMMARY	SUMMARY	SUMMARY
Currency	MYR	MYR	MYR	MYR	MYR
TURNOVER	136,228,000	131,424,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
Total Turnover	136,228,000	131,424,000	-	-	-
Costs of Goods Sold	(86,900,000)	(81,394,000)	-	-	-
	----------------	----------------	----------------	----------------	----------------
Gross Profit	49,328,000	50,030,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) FROM OPERATIONS	38,358,000	61,920,000	75,859,000	48,535,000	18,829,000
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE TAXATION	38,358,000	61,920,000	75,859,000	48,535,000	18,829,000
Taxation	(8,890,000)	(15,462,000)	(15,575,000)	(10,329,000)	-
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) AFTER TAXATION	29,468,000	46,458,000	60,284,000	38,206,000	18,829,000
Minority interests	(7,000)	72,000	-	-	3,000
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) BEFORE EXTRAORDINARY ITEMS	29,461,000	46,530,000	60,284,000	38,206,000	18,832,000
	----------------	----------------	----------------	----------------	----------------
PROFIT/(LOSS) ATTRIBUTABLE TO SHAREHOLDERS	29,461,000	46,530,000	60,284,000	38,206,000	18,832,000
RETAINED PROFIT/(LOSS) BROUGHT FORWARD
As previously reported	224,915,000	107,077,000	65,543,000	33,915,000	15,083,000
Prior year adjustment	-	123,020,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
As restated	224,915,000	230,097,000	65,543,000	33,915,000	15,083,000
	----------------	----------------	----------------	----------------	----------------
PROFIT AVAILABLE FOR APPROPRIATIONS	254,376,000	276,627,000	125,827,000	72,121,000	33,915,000
TRANSFER TO RESERVES - Statutory	-	(25,462,000)	-	-	-
TRANSFER TO RESERVES - General	(15,022,000)	-	(18,750,000)	922,000	-
DIVIDENDS - Ordinary (paid & proposed)	(22,500,000)	(26,250,000)	-	(7,500,000)	-
	----------------	----------------	----------------	----------------	----------------
RETAINED PROFIT/(LOSS) CARRIED FORWARD	216,854,000	224,915,000	107,077,000	65,543,000	33,915,000
	=============	=============	=============	=============	=============
DEPRECIATION (as per notes to P&L)	2,411,000	3,191,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
	2,411,000	3,191,000	-	-	-
	=============	=============

BALANCE SHEET

AFFIN HWANG INVESTMENT BANK BERHAD

ASSETS EMPLOYED:
FIXED ASSETS	5,234,000	6,203,000	-	8,747,000	-
Investment properties	47,840,000	47,983,000	-	-	-
Deferred assets	463,000	2,846,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM INVESTMENTS/OTHER ASSETS	48,303,000	50,829,000	-	48,271,000	-
Goodwill on consolidation	110,002,000	110,002,000	-	-	-
Intellectual property and license rights	52,500,000	52,500,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL INTANGIBLE ASSETS	162,502,000	162,502,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL LONG TERM ASSETS	216,039,000	219,534,000	-	57,018,000	-
Short term quoted/unquoted investments	145,000	581,000	-	-	-
Trade debtors	298,000	1,056,000	-	-	-
Other debtors, deposits & prepayments	23,270,000	13,854,000	-	-	-
Short term loans & advances	464,850,000	371,406,000	-	-	-
Amount due from agents, brokers & reinsurers	225,613,000	179,126,000	-	-	-
Short term loan to financial institutions	65,750,000	56,620,000	-	-	-
Trading account securities	1,816,650,000	2,137,417,000	-	-	-
Cash & bank balances	247,222,000	115,137,000	-	-	-
Money at call & short notice	781,956,000	395,658,000	-	-	-
Others	46,975,000	23,474,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT ASSETS	3,672,729,000	3,294,329,000	3,702,319,000	3,312,434,000	2,722,803,000
	----------------	----------------	----------------	----------------	----------------
TOTAL ASSET	3,888,768,000	3,513,863,000	3,702,319,000	3,369,452,000	2,722,803,000
	=============	=============	=============	=============	=============
Deposits from customers	678,840,000	737,424,000	-	-	-
Deposits & balances of banks & agents	2,029,693,000	1,673,646,000	-	-	-
Provision for taxation	33,000	79,000	-	-	-
Other liabilities	310,545,000	237,584,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
TOTAL CURRENT LIABILITIES	3,019,111,000	2,648,733,000	2,859,566,000	2,287,213,000	1,953,208,000
	----------------	----------------	----------------	----------------	----------------
NET CURRENT ASSETS/(LIABILITIES)	653,618,000	645,596,000	842,753,000	1,025,221,000	769,595,000
	----------------	----------------	----------------	----------------	----------------
TOTAL NET ASSETS	869,657,000	865,130,000	842,753,000	1,082,239,000	769,595,000
	=============	=============	=============	=============	=============
SHARE CAPITAL
Ordinary share capital	500,000,000	500,000,000	500,000,000	500,000,000	500,000,000
	----------------	----------------	----------------	----------------	----------------
TOTAL SHARE CAPITAL	500,000,000	500,000,000	500,000,000	500,000,000	500,000,000
Statutory reserve	148,861,000	133,839,000	-	-	-
Retained profit/(loss) carried forward	216,854,000	224,915,000	107,077,000	65,543,000	33,915,000
Others	3,564,000	6,005,000	235,233,000	235,680,000	235,680,000
	----------------	----------------	----------------	----------------	----------------
TOTAL RESERVES	369,279,000	364,759,000	342,310,000	301,223,000	269,595,000
MINORITY INTEREST	378,000	371,000	-	-	-
	----------------	----------------	----------------	----------------	----------------
SHAREHOLDERS' FUNDS/EQUITY	869,657,000	865,130,000	842,310,000	801,223,000	769,595,000
TOTAL LONG TERM LIABILITIES	-	-	443,000	281,016,000	-
	----------------	----------------	----------------	----------------	----------------
	869,657,000	865,130,000	842,753,000	1,082,239,000	769,595,000
	=============	=============	=============	=============	=============
Contingent Liabilities	3,159,251,000	4,579,139,000

FINANCIAL RATIO

AFFIN HWANG INVESTMENT BANK BERHAD

TYPES OF FUNDS
Cash	247,222,000	115,137,000	-	-	-
Net Liquid Funds	247,222,000	115,137,000	-	-	-
Net Liquid Assets	653,618,000	645,596,000	842,753,000	1,025,221,000	769,595,000
Net Current Assets/(Liabilities)	653,618,000	645,596,000	842,753,000	1,025,221,000	769,595,000
Net Tangible Assets	707,155,000	702,628,000	842,753,000	1,082,239,000	769,595,000
Net Monetary Assets	653,618,000	645,596,000	842,310,000	744,205,000	769,595,000
BALANCE SHEET ITEMS
Total Borrowings	0	0	-	-	-
Total Liabilities	3,019,111,000	2,648,733,000	2,860,009,000	2,568,229,000	1,953,208,000
Total Assets	3,888,768,000	3,513,863,000	3,702,319,000	3,369,452,000	2,722,803,000
Net Assets	869,657,000	865,130,000	842,753,000	1,082,239,000	769,595,000
Net Assets Backing	869,657,000	865,130,000	842,310,000	801,223,000	769,595,000
Shareholders' Funds	869,657,000	865,130,000	842,310,000	801,223,000	769,595,000
Total Share Capital	500,000,000	500,000,000	500,000,000	500,000,000	500,000,000
Total Reserves	369,279,000	364,759,000	342,310,000	301,223,000	269,595,000
LIQUIDITY (Times)
Cash Ratio	0.08	0.04	-	-	-
Liquid Ratio	1.22	1.24	-	-	-
Current Ratio	1.22	1.24	1.29	1.45	1.39
WORKING CAPITAL CONTROL (Days)
Stock Ratio	0	0	-	-	-
Debtors Ratio	1	3	-	-	-
Creditors Ratio	0	0	-	-	-
SOLVENCY RATIOS (Times)
Gearing Ratio	0.00	0.00	-	-	-
Liabilities Ratio	3.47	3.06	3.40	3.21	2.54
Times Interest Earned Ratio	0.00	0.00	-	-	-
Assets Backing Ratio	1.41	1.41	1.69	2.16	1.54
PERFORMANCE RATIO (%)
Operating Profit Margin	28.16	47.11	-	-	-
Net Profit Margin	21.63	35.40	-	-	-
Return On Net Assets	4.41	7.16	9.00	4.48	2.45
Return On Capital Employed	3.71	6.02	9.00	4.48	2.45
Return On Shareholders' Funds/Equity	3.39	5.38	7.16	4.77	2.45
Dividend Pay Out Ratio (Times)	0.76	0.56	-	0.20	-
NOTES TO ACCOUNTS
Contingent Liabilities	3,159,251,000	4,579,139,000

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 63.89
UK Pound	1	Rs. 98.89
Euro	1	Rs. 72.31

INFORMATION DETAILS

Analysis Done by :	KRN
Report Prepared by :	DPT

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.